Each ISA contains two types of material:
·
Basic
principles and essential procedures with which auditors are required to comply.
Basic
principles and essential procedures with which auditors are required to comply.
·
Explanatory
and other material which, rather than being prescriptive is designed to
Explanatory
and other material which, rather than being prescriptive is designed to
assist
auditors in interpreting and applying auditing standards.
Auditors must comply with the international
standards on auditing. Apparent failure to comply leads to disciplinary or
regulatory action against the auditor. In addition the courts may take into
account the ISAS when considering if audit work was adequate in negligence
cases. The explanatory and other material has less authority in theory but not
much less in practice.
standards on auditing. Apparent failure to comply leads to disciplinary or
regulatory action against the auditor. In addition the courts may take into
account the ISAS when considering if audit work was adequate in negligence
cases. The explanatory and other material has less authority in theory but not
much less in practice.
Current ISAs issued by the APB are:
200 Objective and general principles
governing an audit of financial statements
governing an audit of financial statements
210 Terms of audit engagements
220 Quality control for audits of
historical financial information
historical financial information
230 Documentation
240 the auditor’s responsibility to
consider fraud in an audit of financial statements
consider fraud in an audit of financial statements
250 section
A consideration of laws and regulations in an audit of financial statements
A consideration of laws and regulations in an audit of financial statements
Section
B the auditor’s right and duty to report to
regulators in the financial sector
B the auditor’s right and duty to report to
regulators in the financial sector
260 Communication
of audit matters with those charged with governance
of audit matters with those charged with governance
300 Planning an audit of financial
statements
statements
315 Obtaining an understanding of the
entity and its environment and assessing the risks of a material misstatement
entity and its environment and assessing the risks of a material misstatement
320 Audit materiality
330 The auditor’s procedures in response
to assessed risks
to assessed risks
402 Audit considerations relating to
entities using service organizations
entities using service organizations
500 Audit evidence
501 Audit evidence-additional
consideration for specific items
consideration for specific items
505 External confirmations
510 Initial engagements-opening balances
and continuing engagement-opening balances
and continuing engagement-opening balances
520 Analytical procedures
530 Audit sampling and other means of
testing
testing
540 Audit of accounting estimates
545 Auditing fair value measurement and
disclosure
disclosure
550 Related parties
560 Subsequent events
570 Going concern
580 Management representations
600 Using the work of another auditor
610 Considering the work of internal
audit
audit
620 Using the work of an expert
700 The auditor’s reports on financial
statements
statements
710 Comparatives
720 Section
a other information in documents contains audited financial information
a other information in documents contains audited financial information
Section B the auditor’s statutory reporting responsibility in
relation to directors’ reports.
relation to directors’ reports.
Both
the APB and the international accounting standards board (IASB) have glossaries
of terms used.
the APB and the international accounting standards board (IASB) have glossaries
of terms used.